Amortisation is same as depreciation. Amortisation term used to allocate depreciable amount of intangible assets over its useful life.
Reason could be for using different name for depreciating intangible assets is to communicate users of financial statements about the expense due to intangible assets separately from expense due to tangible assets.
The depreciable amount of an intangible asset with a finite useful life shall be allocated on a systematic basis over its useful life. Amortisation shall begin when the asset is available for use, i.e. when it is in the location and condition necessary for it to be capable of operating in the manner intended by management. Amortisation shall cease at the earlier of the date that the asset is classified as held for sale (or included in a disposal group that is classified as held for sale) in accordance with IFRS 5 and the date that the asset is derecognised. The amortisation method used shall reflect the pattern in which the asset’s future economic benefits are expected to be consumed by the entity. If that pattern cannot be determined reliably, the straight-line method shall be used. The amortisation charge for each period shall be recognised in profit or loss unless this or another Standard permits or requires it to be included in the carrying amount of another asset.
1.1 Calculate Amortisation
Common methods for amortization are straight line method and diminishing balance method. Amortisation is calculated same as depreciation.
Term Amortization is used for Intangible Assets and Depreciation is used for Tangible Assets.
In Exams Depreciation is more frequently examined than Amortization.
Non Current Intangible Assets shall be tested for impairment in accordance with IAS 36 Impairment. Impairment test shall be carried atleast once a year or earlier if circumstances dictates. Net carrying value of the Non-current intangible asset shall be reduce by the amount of impairment